Junk-Bond Funds Lose $3.8 Billion in Year's Biggest Outflow
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Investors pulled $3.81 billion from U.S. high-yield bond funds in the past week, the biggest withdrawal since August 2014, according to Lipper.
The outflows jumped from $3.46 billion last week and came after Third Avenue Management’s decision to freeze redemptions in a credit fund triggered concerns of a bigger meltdown in debt markets. The average yield on junk bonds jumped to more than 9 percent on Dec. 14 for the first time since 2011, according to Bank of America Merrill Lynch indexes.